Heritage Foods, the Indian food manufacturer and retailer, is looking for companies to partner with it to grow its retail business.
Dharmender Matai, the chief operating officer for Heritage’s retail and bakery division, told just-food the group’s board has appointed KPMG to look for potential collaborators. He added: “We are looking for financial and or strategic partners in the retail business.”
The group plans to invest INR200m annually over the next five years in its retail outlets in Chennai, Hyderabad and Bangalore. “Our current plan is to stick to opening 75,000 to 100,000 square feet space per year in these three cities only,” Matai explained.
Heritage is also investing in ecommerce. “Currently, we are doing a pilot of our online retail business in Hyderabad. We expect to roll this out to three cities where we operate in the next financial year,” he added.
As well as having retail and agricultural arms, Heritage Foods also makes dairy and baked goods. In the year to the end of March, the company turned over INR20.73bn. Having opened its first store in 2006, Heritage Fresh, the company’s retail brand, now has 105 stores across three southern cities of Chennai, Bangalore and Hyderabad. Its 2015-16 turnover is expected to be INR6bn and should exceed INR10bn by 2018-19, Matai said.
The retail chain has two store formats: the Fresh outlets exceeding 3,000 square feet and MART supermarkets, which are over 10,000 square feet and also sell home décor and other food staples.